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Apeer-to-peer lender is launching a secured retail bond paying 5.375pc in interest annually, until it matures in 2023. The company, LendInvest, is a service that allows individuals to loan their money to finance property projects.

New retail bond issues are rare, typically numbering only a handful a year.

The bond is being issued by LendInvest Secured Income, a subsidiary of LendInvest. The bonds will be secured against the assets of LendInvest Secured Income, which will include any loans that are made by LendInvest using the money raised.

Michael Smith, of specialist consultancy Bondinvest Capital, explained that in the event LendInvest went bankrupt, this security would lead to “some form of recovery for investors in the retail bond, which is a good thing".

The bonds will be listed on the London Stock Exchange’s Order Book for Retail Bonds (Orb), often used by issuers of retail bonds.

That means it must comply with the stock exchange’s regulations, and investors can buy and sell the bonds. This makes it a very different proposition from so-called “mini-bonds” issued by companies, which are not regulated and cannot be sold out of. There have been no defaults among listed retail bonds to date.

The bonds are expected to qualify for inclusion inside investors' Isa accounts, and there is a £2,000 minimum to invest. Interest payments will be made twice a year.